All Forum Posts by: Patrick Martone

Theres a home equity line of credit and a home equity loan. One is a fixed rate, the other isn't. you can refinance out of the credit line and into a fixed rate loan (home equity loan). I think different banks have different names sometimes.

Either way, I want to be able to refi out and get my credit line back to make another purchase. Before that I want to know the obstacles. I have a low debt to income ratio, but I am also going to retire which may affect the approval process (even though I can still make the payments.)

0 Votes

I want to rent my condo on the shore. Does anybody have experience doing this? where should I list besides airbnb and craigslist? What are some of your experiences ?

0 Votes

How long does it take to refi into a home equity loan from a HELOC? What should I watch out for?

0 Votes

Originally posted by @Andrew Postell:

@Patrick Martone good information. I would strongly recommend to just use the LOC to do the entire project. That way you have $0 holding costs and it's more profits to you.

Well the issue is i need my cash to pay off the interest from the LOC monthly.

The more cash i put down, the less interest I pay monthly on the loc. If i put all my cash down, then i have no surplus to pay the loc.

I have considered setting cash aside for 4 months of interest payments, but you never know what can happen with flips. Worst case I go back to fulltime work, but that is a last resort.

0 Votes

Originally posted by @Andrew Postell:

@Patrick Martone I feel that this will be complete personal preference but if you are intending to do flips, would you consider doing more than one rehab project at a time? Also, how much if your line of credit for and what price point of properties are you examining? The answers here might helps us make recommendations better. Thanks!

I will be doing one at a time, doing mainly cosmetic work myself. My HELOC is 312,000, I have 60,000 in Cash. The pricepoints of my homes vary form 150,000-280,000.

0 Votes

I cannot decide what percent of my cash to use as a downpayment, and how much to set aside for holding costs.

I will be doing flips and have my credit line approved. I was thinking of using half of my cash as a downpayment, and the other half as a surplus to pay the holding costs. I'm sure I can go 70% downpayment and 30% surplus, but I want to play it safe.

0 Votes

Originally posted by @Brent Coombs:

Originally posted by @Patrick Martone:

Originally posted by @Brent Coombs:

Originally posted by @Patrick Martone:

I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.

The two HELOCs are in my partner's name. The cash is mine.

I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.

Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.

Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...

To make it simpler, the first equity partner is a family-member, so lets just say I am acting on my own with 375k. Also, I used to project manage on commercial and heavy-industrial sites. What would you do in my situation? Search for a partner who could match my equity? or spring for a hard-money lender if I have the systems in place and a project timeline with deadline for filling vacancies.

As always, it depends on the "deal"! My concern is that you seem fixated on "a 6-10 unit building", perhaps because you think that is where your sweet spot lies. But, is it?

In late 2017, I'm just not sure that such a "deal" is waiting for you, and you alone. The distressed/motivated Sellers out there right now are probably sellers of everything except 6-10 unit buildings! Get what I mean? Time to expand your horizons? Cheers...

I suppose the fixation is me trying to have set criteria. I assume multifamily investing revolves around the deal more than your criteria because each deal is so different and scarce?

0 Votes

Originally posted by @Josh C.:

If he's on the loan the two you may be able to qualify. Depending on other factors.

But if this is your first one a job would be nice as you can project manage and have a regular job. Income is good in my opinion.

I left my job too early, but I am where I am, and returning now would throw everything off.

0 Votes

Originally posted by @Brent Coombs:

Originally posted by @Patrick Martone:

The two HELOCs are in my partner's name. The cash is mine.

Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.

0 Votes

Living near Tunkhannock

0 Votes

All Forum Posts by: Patrick Martone

Patrick Martone has started 37 posts and replied 125 times.

Post: How long does it take to refi out of a HELOC? Any obstacles?

Post: Anyone do Jersey Shore Summer Rentals?

Post: How long does it take to refi out of a HELOC? Any obstacles?

Post: How much cash should I use for a down payment & holding costs

Post: How much cash should I use for a down payment & holding costs

Post: How much cash should I use for a down payment & holding costs

Post: Use capital as downpayment instead of be a cashbuyer

Post: Use capital as downpayment instead of be a cashbuyer

Post: Use capital as downpayment instead of be a cashbuyer

Post: Anyone in the Northeastern PA area that would like to connect?